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Rivian to face trial in Tesla trade secrets theft case, judge says

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FILE PHOTO: Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024.  REUTERS/Joel Angel Juarez/File Photo
Workers assemble vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024. Rivian will be heading to court in a dispute with Tesla over poaching employees and theft of trade secrets. REUTERS/Joel Angel Juarez/File Photo

(Reuters) -Electric car maker Rivian Automotive will go on trial over allegations that it encouraged its employees who defected from Elon Musk’s Tesla to steal trade secrets, according to a tentative ruling issued by a California judge.

Judge Theodore C. Zayner of the Santa Clara County Superior Court tentatively denied Rivian’s motion to dismiss the lawsuit, stating Tesla presented sufficient evidence for a trial.

“Tesla’s evidence establishes that some Rivian employees were less thoroughly investigated and not disciplined,” the judge wrote in the tentative order.

Organizations

A final hearing is set for Wednesday in Santa Clara court.

The legal battle began in 2020 when Tesla filed a lawsuit against Rivian accusing it of an alarming pattern of poaching employees and misappropriating confidential information.

While Rivian presented evidence of its investigation into the trade thefts case, the judge found it “does not conclusively establish that an investigation was adequate.”

Rivian has previously denied the allegations.

Rivian declined to comment while Tesla did not immediately respond to Reuters’ request for comment.

(Reporting by Surbhi Misra in Bengaluru, Editing by Louise Heavens)

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